Digitization as a growth driver

Digitization as a growth driver

The switch from analog to digital television is gaining momentum throughout the world and is a strong organic growth driver for the Kudelski Group. In fact, the transition to digital has turned controlled-access television into a mass market due to the significant business volumes it generates.

Pay-TV subscriber growth is directly driven by the digitization of households. Fierce competition, new players in the television sector and falling advertising revenues force operators to innovate and roll out new value-added services such as video on demand. These services, which complement the classical pay-TV business model, need to be protected by a security system in order to preserve operators' interests. Additionally, new services and value-added content boost customer loyalty and increase the number of new subscribers. As a result, the television industry as a whole is benefiting from digitization.

The advent of digital is also leading to the mass development of certain markets that were not initially considered as pay-TV target markets. One example is digital terrestrial television, which has rapidly become a mass market, particularly in Europe.